The Public Accounts Committee (PAC) of the Legislature-Parliament has concluded that there has been irregularity during the land purchase deal to build fuel storage facilities for Nepal Oil Corporation (NOC).

A meeting of the committee convened on Friday said the NOC has breached the rules and procedure in the purchase deal and decided to write to the Commission for the Investigation of Abuse of Authority (CIAA) recommending action against those involved in the deal.

The PAC arrived at the conclusion that there have been misappropriations while purchasing land plots for expanding NOC’s oil storage facilities in four places—Jhapa, Sarlahi, Chitwan and Bhairahawa. 

“It appears that the land plots were purchased based on Public Procurement Act and NOC’s Financial Administration and Procurement By-law, 2064,” read the PAC’s decision. “Problems were seen in the purchase of land plots through tender citing that it will be delay in acquiring land according to Land Acquisition Act 2034.”

The parliamentary committee has concluded that the price of the land plots was too high because they were bought through agents instead of real owners.

NOC has been accused of misappropriating funds amounting to Rs 800 million while buying land worth Rs 1.61 billion in four places.

NOC had started the process of purchasing land to build oil storage facilities in all seven provinces following the government’s instruction to maintain fuel stock for at least 90 days.